Uber pivots to AI services, tapping gig workers for data labeling

It has already signed on Aurora Innovation and Niantic as clients

by · TechSpot

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The big picture: By capitalizing on its gig-economy expertise and technological infrastructure, Uber hopes to become a player in the AI development ecosystem. As demand for AI-related services continues to grow, Uber's success in this new venture could reshape its business model and open up new avenues for growth.

Uber Technologies is moving beyond its rideshare roots and venturing into the hot artificial intelligence development outsourcing market. The company's new division, Scaled Solutions, is expanding Uber's gig-economy workforce to include programmers and data labelers, offering AI model training and data labeling services to other businesses.

This strategic pivot builds on Uber's internal team that has been handling large-scale annotation tasks for its rideshare, food delivery, and freight units. Now, Scaled Solutions is extending its expertise to serve external clients, including Aurora Innovation Inc., an Uber-backed firm developing self-driving software for commercial trucks, and Niantic Inc., the game developer behind Pokémon Go.

For Aurora Innovation, Uber's contractors are helping ensure accuracy in classifying road objects for self-driving software. Niantic is utilizing Uber's services to evaluate location data for its ambitious project to create a 3D map of the world for augmented reality games.

Uber's entry into the AI services market is well-timed, as global companies increasingly rely on human-vetted data to train AI models. The success of companies like Scale AI Inc., valued at $14 billion, underscores the potential of this rapidly growing sector.

To support Scaled Solutions, Uber has begun signing up contractors with various skills in India, the US, Canada, Poland, and Nicaragua. The company is seeking individuals with programming expertise, language proficiency, and cultural knowledge to perform tasks such as image labeling, text annotation, and video context provision. Earnings for these contractors will be determined by completed tasks and paid out monthly, aligning with Uber's existing model for its rideshare and delivery services.

Uber's vision for Scaled Solutions extends beyond basic data labeling. The company plans to utilize contractors' local knowledge for cultural adaptation of products, engage programmers to refine AI chatbots, and recruit freelancers to evaluate outputs from advanced AI language models.

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Uber says it has the necessary experience to enter the AI services market. "Having performed these tasks at scale over the past decade as part of our own growth, we deeply understand the needs of companies requiring these services," an Uber spokesperson told Bloomberg in an emailed statement. Hiring independent contractors aligns "with our expertise as one of the world's largest providers of flexible work opportunities," the spokesperson added.

However, Uber's expansion into this field is not without challenges. The data labeling industry has faced criticism for underpaying workers, particularly in developing countries. As Uber expands its contractor base globally, ensuring fair compensation across different regions will be crucial for the company's reputation and the sustainability of its new venture.

Additionally, Uber will need to figure out how to maintain high standards of data quality across a diverse, global workforce.